According to reports, traditional media and entertainment giant Warner Bros. Discovery Inc. will launch its Max streaming service in Asia this week. However, the company did not invest billions of dollars to create local content to attract new users, but instead relied on its Hollywood blockbusters and TV shows to attract traffic.
The report states that the company will rely on well-known series such as Harry Potter and Friends to attract audiences in the region, distinguishing itself from competitors Netflix and The Walt Disney Company.
James Gibbons, President of Warner Bros. Asia Pacific, stated that the first phase of growth will come from partnerships with local streaming platforms and telecom operators. Max Hub will be available for local streaming services in Japan and New Zealand, as well as bundled with partners in some Asian markets, just as Max is bundled with Disney+and Hulu in the United States.
When the company believes it has enough audience, the next step will be to launch the Max standalone application. Warner Bros. has also taken a similar approach in the UK, with Sky being a partner for HBO Max content for many years. The agreement will expire in 2025, and Max will launch its own direct to consumer application in 2026.
Adapt to local conditions
However, the launch plan in Asia will vary by country. Specifically, Max will be launched on Tuesday through Max.com and selected partners in countries such as Indonesia, Malaysia, the Philippines, Singapore, and Thailand, replacing HBO Go in some markets. Max will open to Sky customers in New Zealand on October 30th and will enter Australia next year.
In Japan, local content accounts for 80% of media consumption, and Warner Bros. has exclusively launched Max on the local streaming platform U-Next, offering a wide range of program catalogs including "Game of Thrones" and "Sex and the City". Max has not yet been launched in South Korea, but Warner Bros. is in negotiations with potential partners including Tving.
We need to tailor solutions for individual markets because each market is different. This is not a one size fits all approach, "the company said.
Go in the opposite direction
In fact, for Warner Bros. 'exploration, choosing to cooperate with local platforms and effectively build loyalty to streaming content in the context of entering Asia later than its peers can increase subscription users without requiring significant upfront investment.
JB Perrette, CEO of Warner Bros. responsible for global streaming and gaming, said in an interview, "We have an advantage in entering this field so late because they have already spent a lot of money, or rather wasted a lot of money, trying to compete with excellent local companies that produce exciting local stories. Our approach is very different from theirs
As Warner Bros. launches its Max in the world's most populous region, its competitors are redefining their priorities in the area due to relatively slow growth compared to their investment scale.
For example, Amazon has withdrawn from the Southeast Asian market and shifted its focus to the Indian and Japanese markets. Disney has also reduced its spending in Southeast Asia, merged its business in India with a local partner, and shifted its investment in local content towards Korean dramas and Japanese anime. However, Netflix still insists on releasing original works.
Warner Bros. executives see Max's first appearance in Asia as the biggest opportunity for user growth. Executives say that although per capita income in Asia will be lower than in the United States or Europe, the growth of subscribers will ultimately increase advertising revenue.
Considering competition and budget, their local content investment strategy must be cautious and tactical in the short term, "said Vivek Couto, Executive Director of Media Partners Asia, an industry consulting firm." By 2029, Max is expected to generate over $600 million in revenue annually from markets in Japan, Australia, New Zealand, and Southeast Asia